My client has import of Plastic Role under chapter 3910 after payment of customs, CVD, and SAD duty and cutting of plastic rolls as per customer requirement is amounting to manufacturer and he has to pay manufacturing duty or not whether dealer RC is enough
Please check the Section 2f(iii) and Schedule 3 of the Tariff act along with the Supreme Court's judgment in S.R. Foil matter.
The following inputs which may be useful to you.
As per Excise rules, in respect of the manufacturing process,
- There should be inputs (raw materials)
- They should be subjected to processing.
- As a result a new product quite different from the inputs should be obtained.
- The Finished Product must have a distinct Name, Character and Usage quite different from the inputs.
Refer to the case laws to check whether the said process amount to manufacture or not:
Case Law referred:
1. Kores India Ltd (2004 (11) TMI 107 - SUPREME COURT OF INDIA) =(2004) 174 ELT 7(SC)
Type writer / Telex ribbons in jumbo rolls of more than 200 metres length are cut into standard lengths of 10 metres or 5 metres, wound in spools and sold as ribbon in spools for use in typewriter. Ribbon in jumbo rolls can not be used in type writer. Ribbon in spool is a distinct identifiable article having distint name, function and use. Therefore the said process is manufacture.
2. Prachi Industries (2008 (3) TMI 25 - Supreme court) = (2008) 225 ELT 16(SC)
Swaging on duty paid MS tube / Pipe amounts to manufacture. Because after undergoing swaging process a workpiece of different shape and use emerges. By the use of dies and presses distinguishable identity of lasting character is imparted to a plane MS Pipe / tube.
3. Arihant Tiles and Marbles P Ltd (2009 (12) TMI 1 - SUPREME COURT)= (2010) 249 ELT 161(SC) Income Tax Case
Sawing of marble blocks into slabs and tiles and polishing them amount to manufacturing.
Regards
R.Muthuraj
9911796707
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